FTSE 250 movers: Vectura surges on buyout; C&C retreats

London’s FTSE 250 was up 0.9% at 22,634.84 in afternoon trade on Wednesday, boosted by deal news.

Pharmaceutical company Vectura surged to the top of the index after it agreed to be taken over by US private equity firm The Carlyle Group in a £958m deal. Under the terms of the deal, Carlyle will pay 136p in cash for each Vectura share and a 19p cash dividend. The price represents a premium of around 27% to the closing Vectura share price on Tuesday.

Marks & Spencer was also a high riser as it said it was closing 30 stores after posting a heavy annual loss as it felt the full impact of the coronavirus lockdowns on clothing sales, but that it expects to return to profitability this year.

Mediclinic and Softcat were also trading higher after results.

On the downside, drinks company C&C Group tumbled after it announced a rights issue to raise around £151m, posted a drop in full-year revenues and said it swung to an operating loss as it took a hit from the pandemic.

In the year to 28 February, the company swung to an operating loss of €59.6m from a profit of €118.6m the year before, with revenues down 56.1% to €736.9m. C&C said the operating loss was "a direct result of the impact of Covid-19".

FTSE 250 - Risers

Vectura Group (VEC) 162.20p 32.95%
Marks & Spencer Group (MKS) 171.85p 10.20%
UK Commercial Property Reit Limited (UKCM) 76.90p 6.36%
Mediclinic International (MDC) 327.80p 6.29%
Softcat (SCT) 1,911.00p 5.93%
Network International Holdings (NETW) 403.40p 4.16%
NCC Group (NCC) 304.00p 4.11%
Hammerson (HMSO) 36.35p 3.83%
Elementis (ELM) 157.90p 3.75%
Shaftesbury (SHB) 610.00p 3.74%